States address impact of rising energy prices on poor

Georgia regulators release emergency funds for winter.

Posted: Thursday, September 29, 2005

ATLANTA - Concerned about how low-income residents will face soaring heating bills this winter, state regulators want to release $6 million in funding assistance.

On Tuesday, the Georgia Public Service Commission will vote on whether to spend the money from a Universal Service Fund collected by Atlanta Gas Light to pay for emergency bill relief as well as to run pipes to areas without natural gas service.

Commission Chairwoman Angela Speir, who proposed the move Thursday, said the funding could give an additional $220 in payments to 27,000 natural gas customers in the state who also qualify to receive federal help.

She said the state's per therm rates for natural gas jumped 30 percent between August and September.

"Clearly, there is a need," Speir said. "Now is the appropriate time to act."

If approved, the USF money will be used to supplement the state's annual portion of the federal Low Income Home Energy Assistance Program which gives qualifying applicants between $174 and $220 a year for utility bills.

Last year, the state received $19 million in federal assistance funds, which also can be used for electricity, propane or wood costs while the state USF money is limited to Atlanta Gas Light customers.

Rising energy costs coupled with hurricane-related damage to the Gulf region's natural gas production facilities have prompted lawmakers across the nation to look at bill-assistance funding for the upcoming winter.

Congress is weighing requests from its members to add between $1.3 billion and $2 billion to this year's funding levels. Last year, the program distributed $2.2 billion for local community groups to portion out to applicants.

A bipartisan group of 28 governors also called on Congress to release the emergency funds.

Traditionally, more of an issue for the colder states in the Northeast and Midwest, the federal money is getting attention from other states as well, said Mark Wolfe, executive director of the National Energy Assistance Directors' Association.

"I think the affordability issue this year is turning that around," he said. "The average benefit was about $300 three years ago, and it's still $300. But the cost of energy has gone up - almost doubled. We're facing severe affordability issues this winter."

Georgia does not budget state funds toward the program, but some Democratic legislators said that option should have been discussed during the special session in Atlanta earlier this month to suspend gasoline taxes.